In a recent move, a consortium of hedge funds has dropped their appeal in US courts but continue their case in Germany. The group lead by Elliot International LP together with eleven other hedge funds agreed to file a notice of desistance to the appeal made to the US Court of Appeals in New York.
The case stems from the alleged failure of Porsche Automobil Holding SE to use options in its takeover bid for Volkswagen AG back in 2008. For its part, Porsche has signified their agreement to the withdrawal of the appeal but this requires the court's approval to become binding and effective on the parties.
Another group of hedge funds totaling twenty six all in all had also agreed to not to pursue an appeal against Porsche. The group, one of which is David Einhorn's Greenlight Capital Inc initially sought court intervention claiming that Porsche had unlawfully manipulated the sale of shares of Volkswagen to their injury.
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